BP to Build Tight Gas Processing Plant in Oman

BP is planning to build a large natural gas processing plant to process gas to be produced from its block 61 tight gas fields in north-central Oman.

According to Times of Oman, a commercial agreement between BP and Oman government for starting the full-field development of the field is expected to be signed before the end of the year.

Both parties signed a heads-of-agreement few months ago. 

The plant will have a capacity to process one billion cubic feet of natural gas per day, which is the anticipated production from gas-rich Khazzan and Makarem fields in the first phase, Times of Oman said.

Sources at the Ministry of Oil and Gas has earlier told Times of Oman that BP is expected to invest about $20billion-$24 billion for the first phase full-field development of its block 61 tight gas fields.

The first phase of the development programme is spread over a 25 year-concession period and aimed at producing 6.7 trillion cubic feet (TCF) of natural gas, which is equivalent to one billion standard cubic feet of gas per day. The first delivery of gas is expected by 2017. 

BP is planning to drill 282 wells and the first delivery of gas is expected by 2017, the newspaper said.